Employee Final Pay Within Occupations
Description
How to fill out Termination Meeting Checklist?
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FAQ
Severance pay can be significantly higher than the termination pay required by the ESC. Where that is the case, the employee is entitled to receive the higher of the two amounts. However, unlike termination pay, it is possible for employers to contract out of an obligation to provide severance pay.
The employer must pay the employee's earnings with 10 days after the end of the pay period in which termination occurred, or 31 consecutive days after the last day of employment. Neither earnings nor other terms or conditions of employment may be reduced during the notice period.
After being encouraged to step down, some individuals do ? convinced that it's better to resign than to be fired or let go. However, the opposite is often true. If you quit your job voluntarily, your company doesn't have to provide you with a severance package, which can be as much as 24 months' pay.
It's also important that you present the information you have to the employee. Be clear and unwavering, and explain why you decided to terminate them. Also, make sure you actually say the words ?We're terminating you? or ?We're letting you go.? Don't use ambiguous language.
The main difference between severance pay and termination pay is that severance pay is compensation that an employer must pay to a qualifying employee who has been dismissed in addition to what is required by statutory notice obligations (ESA guidelines for termination pay).
